S&P affirms Saudi ratings at ‘A-/A-2’ with stable outlook

Standard & Poor’s Global Ratings has affirmed Saudi Arabia’s long- and short-term ratings at “A-/A-2” with a stable outlook.

“We expect Saudi Arabia will experience modest economic growth from 2018, supported by rising government investment and, later in our forecast period, a gradual increase in oil production,” S&P said in a statement Friday.

In 2018, oil prices, in addition to other revenue measures, should be supportive of the government's revenue growth and headline fiscal consolidation, despite substantial expenditure growth, it added.

Saudi authorities are expected to continue steps to consolidate public finances over the next two years, while maintaining the Kingdom’s formidable stocks of liquid external assets, the firm said.

“The ratings on Saudi Arabia are supported by its strong external and fiscal stock positions, which we expect it will maintain despite large central government deficits,” S&P added.